by business editor Trevor Sturgess

A quarter of a million over 50s may have to sell their home to pay off their mortgage, according to a poll.

Research by Saga Equity Release Advice Service, based in Folkestone, shows that more than a million over 50s could face a shortfall when it comes to paying off their interest-only mortgage because their endowment policies will not cover it. A quarter say they will have to sell their home.

Amid warnings today by the Financial Conduct Authority that millions of borrowers with interest-free mortgages may not be able to pay off the capital, Saga says that some over 50s are clinging on to the "last rung" of the property ladder.

Under-performing endowments have left those with interest only mortgages facing an average shortfall of £49,000.

As high as one in 10 have no way of paying their mortgage off, Saga estimates that they have to find £5 million to keep the lenders from knocking at their door.

Saga warns that moving home could be the worst case scenario for those facing a shortfall, as many over 50s couldn’t bear selling their home because it’s filled with family memories.

It says this could be why half of over 50s haven’t moved home for more than 20 years.

However, a quarter of people say that they will have to sell their home to make up for the shortfall from their endowment policy.

One in 13 of those facing a shortfall have bought themselves some extra time by extending their mortgage, while a third plan to dip into their savings to pay off their mortgage.

While some people have some sort of plan in place, one in 10 don’t know what they will do to pay the outstanding balance on their home.

Paul Green, Saga director of communications, said: “Finding your endowment policy has failed to payout the way you expected can be a great shock, but facing an endowment shortfall need not mean that you lose your home as there are other options open to people to plug the gap.”

They include equity release or possible unclaimed state benefits.